Petrobras in talks to sell stakes in Argentinean refineries to Oil Combustibles for $400 mn

Brazilian state run oil company Petroleo Brasileiro SA (Petrobras) is in advanced talks to sell stakes in its refineries and other assets in Argentina to local company Oil Combustibles, for $400 million, Reuters reported yesterday, citing a source close to Petrobras.

The sale is part of the oil giant's plan to sell non-core assets worth around $14.8 billion in order to fund its massive $236 billion five-year oil exploration and expansion plan, the world's largest corporate investment program.

Petrobras, is selling its stakes in the Dr. Ricardo Elišabe refinery in Buenos Aires and in the Refinor refinery in the province of Salta.

The Dr. Ricardo Elišabe refinery has a capacity of 1.5 million tons per annum or 30,000 barrels a day and processes crude oil from the Neuquen basin as well as a variety of imported crude.

The refinery produces gasoline, marine fuels, raw materials for the production of solvents and petrochemical products, kerosene, diesel oil, fuel oil, asphalt base, propane, propylene and butane.

The Refinor refinery has capacity of 1.5 million tons per annum or 28,500 barrels per day and process crude oil and natural gas from the west basin and Bolivia, through two pipelines and produced LPG, gasoline, diesel and fuel oil.